Question:
I have questions regarding the job search deduction on
Schedule A. My wife and I are thinking about relocating to
another city/state. We want to travel to a prospective city
and stay there for a week or two to check out the area and
look for jobs. I am currently employed; she isn't. We
would both be looking for jobs in our current professions.
Our expenses would include airfare, rental car, hotel, and
food. Would any of these expenses be deductible? Would we
have to have job interviews while there, or would looking
for a job be sufficient?
The IRS explanations that I've seen are kind of vague. They
don't explicitly say what constitutes looking for a job.
Answer:
-They are vague because you are in a grey area. First of all,
your job hunting expenses will only become an issue if you
get audited. Assuming that happens, remember that the IRS
employee conducting the audit is not stupid, and has most
likely gone through this many times. So the issue is your
credibility and intent. If you could document some
interviews made ahead of time and be credible that you trip
was primarily for the job search, you'll have a good shot at
the deduction being allowed. The IRS will be quick to spot a
vacation trip under the guise of a job hunt and disallow it.
-Local transportation, and travel expenses while away form
home, typing resumes, postage, etc. It would include
lodging, I suppose meals, although I'm unsure, but if so
they'd be limited to 50%.
You had better have good documentation on the number of
interviews and the effort you put forth during your "week or
two" stay, especially at locations like Disney (I mean
Orlando), and New Orleans (during Mardi Gras), etc, etc, you
get the idea.
In any event they are subject to a 2% of AGI floor, and
itemizing your deductions.
-1. expenses of looking for a first job are not, your post re
you both suggest that is not your case.
2. Meals get 50% , rest is 100%
3. if you mix business with pleasure the service expects you
to prorate. I think merely getting a flavor for the area
gets a bit too grey. Better to have a bona fide search.
An interview per se is not required. But use some common
sense!!
